Resilience in a Cooling Economy 

It’s important to be able to read the signs in a changing economy. Retrospectively, it’s easy to see the changes that have been coming. But those who can find and see the signs ahead of time often have more resiliency when the cycles shift, which they always do.

Resiliency is about watching and preparing for these shifts. It’s positioning yourself for the future on the backside of the pandemic. Last summer, we predicted a cooling off of the economy, and in fall and winter we saw the effects of that, such as in the form of retailers’ excess inventories.

Now, we are finding ourselves in a full-blown concern over the market. Housing markets are declining, and most economists, despite showing optimism throughout 2022, are now predicting a recession sometime in 2023-2024. Rising interest rates and geopolitical concerns impact the markets, consumer and employee behaviors.

How can we prepare?
We can boost our resiliency by watching the markets – and not just the stock market. Pay attention to the broader financial markets and real estate markets, including the growing vacancies in the office segment. Keep tabs on changing consumer trends and shifting demographics. One report I keep an eye out for each year is the Annual National Movers Study put out by United Van Lines. This offers great insight into how things may change, and the recent report bodes well for the Carolinas.

The Carolinas, as a destination for relocating residents and companies alike will weather the storm a lot better than other parts of the country, primarily because of the large shifts in population moving here. Our lower costs of living and robust job opportunities continue to draw newcomers, which will give our area strength even if the national economy falters.

-Kathleen